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Committee releases bill to license community management entities
Summary
The Assembly Housing Committee released A2450, which would require licensure of entities that manage common interest communities and authorize DCA to set standards and penalties. Supporters said licensure can protect homeowners; industry stakeholders requested amendment opportunities.
Assemblywoman Sherry Lopez's Assembly Housing Committee voted to release Assembly Bill 2450, a proposal to require licensure of community management entities that contract to provide management services to common interest communities, including condominiums, cooperatives and homeowners associations.
The bill, read into the record by committee staff, directs the Commissioner of Community Affairs to establish a licensure system and authorizes penalties up to $4,000 per violating contract. It would take effect on the first day of the seventh month following enactment.
An industry representative testifying for the New Jersey Chapter of the Community Association Institute (CAI) said the organization supports the concept of manager licensing and urged lawmakers to consider revisions based on earlier legislation. The witness described prior work on a different bill that would have licensed individual managers, proposed a nine-member regulatory board with manager and public representation, and recommended clarity on exemptions, experiential prerequisites, fidelity-bond insurance, continuing education, and recognized certifications as potential criteria for licensure.
Assemblywoman Kehano, speaking from personal experience as a condominium resident, said management companies can fail to provide required meeting notices and other records and urged the committee to release the bill so sponsors and stakeholders can work on amendments that protect homeowners’ rights.
The committee moved to release the bill; a roll call recorded yes votes from the members present and the measure was released for further legislative consideration.
